Quick answer: Fully loaded cost is the complete cost of one employee once every hidden line is added. It starts with salary and statutory contributions such as employer PF and gratuity, then adds insurance, a laptop, a desk, recruitment and any EOR fee. GST at 18% may apply to an Indian provider’s invoice unless it qualifies as an export.
- Employer PF is 12% of wages up to the ₹25,000 ceiling, or ₹3,000 a month, since 17 September 2026.
- Gratuity provision runs at about 4.81% of wages from the first month.
- GST on EOR and manpower services is 18%, usually charged on the whole invoice.
- An EOR invoice to a client abroad can be zero-rated if all five export conditions in s.2(6) of the IGST Act are met.
How do you calculate fully loaded cost?
Layer by layer. Salary first, then the law, then everything that makes the person productive.
Let’s say you hire a Pune engineer on ₹1,50,000 a month gross, with wages (basic plus DA) of ₹75,000. The equipment, seat and hiring figures below are assumptions for illustration.
| Layer | Line | Monthly |
|---|---|---|
| Salary | Gross salary | ₹1,50,000 |
| Statutory | Employer PF, EDLI and admin | ₹3,250 |
| Statutory | Gratuity provision (4.81% of ₹75,000) | ₹3,608 |
| Benefits | Group health insurance | ₹2,000 |
| Equipment | ₹1,20,000 laptop over 36 months | ₹3,333 |
| Workspace | Coworking seat | ₹9,000 |
| Hiring | ₹1,80,000 recruitment fee over 24 months | ₹7,500 |
| Subtotal | Before EOR fee and GST | ₹1,78,691 |
| Provider | EOR fee | From USD 99 |
So the subtotal lands about 19% above gross salary, before the provider fee and before any GST you cannot recover. That is about ₹21.4 lakh a year. Per hire.
The first four lines are your total employment cost. The rest makes it fully loaded.
Where does GST fit in fully loaded cost?
On the provider’s invoice. An Indian EOR charges 18% GST, and market practice applies it to salary plus fee.
If your company is in India and GST-registered, you can usually claim that GST back as input tax credit. If you are abroad and the supply meets every export condition, it is zero-rated. The Grant Thornton note on GST for intermediary services explains the 2026 change and the five conditions.
Hence GST is often a cash-flow cost, not a final one. Check first.
Why does fully loaded cost matter more than CTC?
Because CTC is only a promise. Fully loaded cost is the bill.
Founders comparing an EOR with their own subsidiary often compare a flat or percentage EOR fee against nothing. But a subsidiary has its own fully loaded lines: audit, company secretary, registrations and an office lease. Our guides to EOR cost vs direct hire and EOR vs opening an entity set the two side by side.
How does Remunance keep fully loaded cost predictable?
Remunance bundles laptops through its IT equipment provisioning service, coordinates workspace and runs talent acquisition, so most fully loaded lines sit on one invoice. Employment costs pass through at cost, and our fee is a flat amount from USD 99 per employee per month. To see every line for your roles, get a fully loaded cost breakdown.
What else do people ask about fully loaded cost?
What is a typical fully loaded cost multiplier in India?
No reliable single figure exists. It moves with pay, seating, equipment and hiring choices, so build it from your own lines rather than borrowing a multiplier from another market.
Does fully loaded cost include taxes?
It includes employer taxes and contributions, plus GST where you cannot recover it. Employee income tax is deducted from salary, so it is not an extra cost.
Is fully loaded cost the same as total cost of employment?
Not quite. Total employment cost covers salary, statutory costs and benefits. Fully loaded cost adds equipment, workspace, recruitment and provider fees.